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Kingbird Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee
Kingbird Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method. Double-Declining- Balance Sum-of-the- Year Straight-Line Years'-Digits 1 $12,780 $21,300 $28,400 2 12,780 17,040 17,040 3 12,780 12,780 10,224 4 12,780 8,520 6,134 5 12,780 4,260 2,102 Total $63,900 $63,900 $63,900 Answer the following questions. (b) What amount, if any, was used in the depreciation calculations for the salvage value for this asset? Salvage value $ eTextbook and Media eTextbook Assistance Used
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